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Social Compact on Eskom Signed

December 10, 2020

Department of Public Enterprises

The Framework Agreement for the Social Compact on supporting Eskom for Inclusive Economic Growth has been signed.

In a statement, the public enterprises department announced that the public enterprises minister, Pravin Gordhan, signed the Social Compact together with leaders of organized business, labour and community constituency at the end of the National Economic Development and Labour Council (Nedlac) 25th Annual National Summit.

Work on the Social Compact got underway at Nedlac at the end of 2019.

According to the department, the social partners at Nedlac recognized that the “resolution of the energy challenges was instrumental in ensuring the economic recovery of the country”.

The minister pointed out that the “Social Compact would allow partners to work together on “just transition” projects for the repurposing of old coal-powered stations, as part of mitigating against climate change, and transitioning them towards clean coal technologies.”

Speaking at the Summit, the deputy president, David Mabuza, declared that “purposeful partnerships through social compacting, are important to support the enhancement of our maturing democracy and the bureaucracy critical for provision of basic services in a non-partisan manner”.

The deputy president added that the “Social Compact remains relevant and will be an important vehicle to hold Eskom to account to rectify the problems of the past, and serve the people of South Africa with sustainable supply of electricity going forward”.

The deputy president also called for the repositioning of Nedlac to become a relevant platform of social dialogue in South Africa.

“If we are to build NEDLAC into a vibrant and agile institution that is fit-for-purpose, we have to move swiftly to amend its founding legislative instruments so that there is inclusion and participation of the Community Constituency in all Chambers and structures of NEDLAC,” he said.